Swissmedic Reports Another Million-Dollar Loss

These fell from just over 91 million to 59.5 million Swiss francs. The agency cited a structural shortfall, increased operating and personnel costs, and a reduction in a fee in 2022 as reasons for the deficit. The additional expenses were caused, among other things, by stricter medical device regulations and investments in IT, the agency further reported.

To stabilize its finances, the Institute’s Board took drastic measures in November of last year: By 2027, 45 of 510 full-time positions are to be cut. In addition, operating costs are to be reduced by approximately six million francs.

An increased federal contribution starting in 2027 and a new fee for medical devices are also expected to help improve the situation. At the end of May, the Federal Council approved an additional 2.7 million Swiss francs for Swissmedic. This brings the federal contribution to 22 million Swiss francs.

The federal contribution accounts for approximately 17 percent of the Swiss Agency for Therapeutic Products’ funding; according to the federal government, the remaining 83 percent comes from fees and regulatory charges related to the regulation and oversight of the pharmaceutical industry.

Under current conditions, the Swiss Agency for Therapeutic Products also expects deficits in the coming years. As early as 2024, Swissmedic recorded a loss of 23.4 million Swiss francs.

Replacement of old IT systems taking longer

Meanwhile, performance in its core business remained consistently high, according to the report. Swissmedic approved 40 human medicines with new active ingredients and 24 veterinary medicines, the report added. In addition, the institute intensified its supervisory activities and handled over 6,000 cases of illegal drug imports.

According to Swissmedic, progress was also made in digital transformation: As part of the “Transformation Swissmedic Platforms” program, the foundation for further digitalization was laid, including through the transition to a private cloud infrastructure. However, the complete replacement of outdated IT systems will be delayed and is now expected to be completed by 2030.